Mining Developments in the Northern Territory
December 2014
This document contains a summary of likely new mining developments in the Northern Territory over the next 1-4 years. It is not intended to be comprehensive and does not contain a number of projects that are at various stages of feasibility study.
All information should be confirmed with the proponent Company. For further information on mining developments, contact the Director Mining Development of the NT Department of Mines and Energy or visit the website at www.minerals.nt.gov.au or email to [email protected]
MINING DEVELOPMENTS SUMMARY – DECEMBER 2014 UPDATE 1. Recent (Past 24 months)
Company Project Location Product Development
Gemco GEEP2 Groote Eylandt Manganese Plant upgrade
Matilda Zircon (MZI Resources)
Lethbridge South
Tiwi Islands Zircon New deposit Crocodile Gold Cosmo Deeps Pine Creek Gold Underground Western Desert Res* Roper Bar Roper River Iron Ore New mine
Xstrata McArthur River Gulf Zinc & Lead Phase 3 Expansion Aust Ilmenite Res * SILL80 Roper River Ilmenite (Ti, V) New mine
*indicates companies in Administration and/or Receivership
2. Pending (Next 12 months)
Company Project Location Product Development AAM Spinifex Bore Alice Springs Garnet sands New mine Aard Metals Warrego Tails Tennant Magnetite, Gold Reprocessing
ABM Resources Twin Bonanza Tanami Gold New mine
ERA Ltd Ranger 3 Deeps Jabiru Uranium U/G Expansion
Primary Gold Toms Gully Darwin Gold Reopen mine
TNG Limited Mt Peake Alice Springs V, Ti, Fe New mine
3. Potential (Next 12-48 months)
Company Project Location Product Development Arafura Resources Nolans Alice Springs Rare Earths New mine
Crocodile Gold Maud Creek Katherine Gold New mine
Crossland Charlie Creek Alice Springs Rare Earths New mine
Energy Metals Bigrlyi Alice Region U, V New mine
Gemco (BHPBiliton) Eastern Leases Groote Eylandt Manganese Mine Expansion KGL Res (Kentor) Jervois Alice Springs Copper, Silver Reopen mine Metals X (Westgold) Rover Tennant Gold, Copper New mine
Minemakers Wonarah Tennant Phosphate New mine
MZI Resources Kilimiraka Bathurst Island Zircon New mine
Rum Jungle Res Ammaroo Tennant Phosphate New mine
Sherwin Iron* Sherwin Creek Roper River Iron ore New mine Territory Iron Frances Creek Pine Creek Iron ore Mine Extension
Thor Mining Molyhil Alice Springs Mo, W Reopen mine
Tellus Holdings Chandler Alice Springs Salt New mine
Vista Gold Mt Todd Katherine Gold Reopen mine
PENDING MINE DEVELOPMENTS – NEXT 12 MONTHS
Mine Name SPINIFEX BORE
Company Australian Abrasive Minerals Pty Ltd Contact Robert Brand – Director & Project Manager
Phone: (08) 9315 2177 Email: [email protected] Location Approx 170 kms north east of Alice Springs
Description New open cut mine strip mining. Onsite processing wet screening plant to produce concentrate and dry magnetic & electrostatic separation. Final product trucked to Alice Springs for road/rail to Darwin or Adelaide.
Product Garnet sands
Resource 800,000 tonnes Mine Life 25 years
Approvals Environmental – August 2011 Mining – pending Proposed Schedule Construction – Dec 2014 Production – Q2 2015 Jobs Construction – 20 to 30 Production – 16 to 20
Capex $14.4M
Mine Name WARREGO TAILINGS PROJECT
Company Aard Metals Limited
Contact Myles Fang – Executive Director
Phone: (02) 9235 3188 Email: [email protected] Location 48 kms west of Tennant Creek
Description Reprocessing of old tailings dams to extract magnetite (gravity and magnetic separation) and possibly gold and copper.
Product Magnetite (potential gold & copper)
Resource 7.8 Mt of tailings to produce 2.92 Mt of Magnetite @ 67.1% Fe. (JORC).
The inferred resource also contains 119,000 ozs gold and 16,500 t copper.
Mine Life Approx 6 years
Approvals Environmental – Nov 2011 Mining – pending
Development subject to finance. Pre-development MMP in place Jan 2013.
Proposed Schedule Construction – Q2 2015 Production – Q1 2016 Jobs Construction – 30 to 50 Production – 20 to 30
Capex $20M
Mine Name TWIN BONANZA
Company ABM Resources NL
Contact Darren Holden – Managing Director
Phone: (08) 9423 9777 Email: [email protected] Location 630 kms northwest of Alice Springs
Description New mine. Stage 1 was 10,000t bulk sample in 2013. Stage 2 is open pit mining with ore treated at the leased Coyote Processing Plant in WA, subject to conditions precedent. Stage 3 will be dependent on ore-body performance and includes potential underground operations.
Product Gold
Resource (uncut) Global Resource of 1.7Mt @ 11.7g/t gold for 640,000 ozs (Old Pirate) Mine Life Stage 2 is approx. 2 years & Stage 3 is estimated at 4 years.
Approvals Environmental – May 2014 Mining – MMP approval pending Proposed Schedule Stage 1 complete in 2013. Stage 2 mining scheduled in Q1 2015, subject to
condition precedent on Coyote Processing Plant lease and mining approvals.
Jobs Construction – 20-40 Production – 68 Capex Stage 2 – approx. $5M
Mine Name RANGER 3 DEEPS
Company Energy Resources of Australia Ltd (ERA) Contact Andrea Sutton – Chief Executive
Phone: (08) 89243500 Email: [email protected] Location Approx 260 kms east of Darwin
Description Exploration decline and underground exploration drilling of Ranger 3 Deeps ($120M) for resource definition to be completed in Q4 2014. The Pre- Feasibility Study (PFS) ($57M) is expected to be complete by end 2014 for consideration by ERA Board in early 2015. Ore from proposed underground mining operations to be processed in existing facilities.
Product Uranium (U3O8)
Resource Estimated 12.2 Mt @ 0.285% U3O8 equating to 34,761 t of uranium oxide.
Mine Life Until Jan 2021
Approvals Development proposals submitted on 16 January 2013. Draft Environmental Impact Statement submitted 3 Oct 2014 and on display for public comment until 12 Dec 2014. Mining approvals subject to environmental approvals.
Proposed Schedule Construction – Q2 2015 Production – Q4 2015 Jobs Construction – 100-150 Production – TBA Capex Includes $120M for exploration decline and $57M for PFS
Mine Name TOMS GULLY
Company Primary Gold Limited
Contact Clay Gordon – Managing Director
Phone: (08) 9364 9009 Email: [email protected] Location Approx 90 kms east of Darwin
Description Reopen the underground Toms Gully Mine and refurbishment of the onsite processing plant. Feasibility Study completed and assessing financial options for immediate start to refurbishment to enable production in Dec 2015.
Product Gold
Resource 1.1 Mt @ 9.0g/t for 315,000 ozs. Reserve 775,000 tonnes at 6.9g/t Au Mine Life 3 years +
Approvals Development proposals submitted in Dec 2013. EIS in preparation.
Proposed Schedule Construction – June 2015 Production – Dec 2015 Jobs Construction – TBA Production – approx. 100
Capex $26M
Mine Name MOUNT PEAKE
Company TNG Limited
Contact Paul Burton – Managing Director
Phone: (08) 9327 0900 Email: [email protected] Location 235 kms north of Alice Springs
Description Open pit mining & production of magnetite concentrate with potential integrated onsite processing to produce high purity iron, vanadium and titanium products. New processing technology developed. Pre-Feasibility Study released in July 2012. Definitive Feasibility Study due Mar/Apr 2015.
Product High purity Vanadium (99% V2O5), Titanium (55% TiO2) & Iron (99.9% Fe2O3) Resource 160Mt @ 0.3% V2O5, 5% TiO2, 23% Fe (120Mt Measured JORC)
Mine Life Approx 20 years
Approvals Development proposals submitted July 2013. EIS in preparation.
Proposed Schedule Construction – Q4 2015 Production – Q4 2016 Jobs Construction – up to 350 Production – 175 - 250 Capex Estimated $421M (Stage 1 – Direct Costs) from PFS
POTENTIAL MINE DEVELOPMENTS – NEXT 12 - 48 MONTHS
Mine Name NOLANS BORE
Company Arafura Resources Limited
Contact Brian Fowler – General Manager Northern Territory & Sustainability Phone: (08) 8947 5588 Email: [email protected] Location 135 km northwest of Alice Springs
Description New mine. Open cut mining, beneficiation to a mineral concentrate and subsequent chemical processing to produce rare earth intermediate product, which will be shipped from Nolans to an international refining facility.
Product Rare earths with opportunity for phosphate and minor uranium products.
Resource 47 Mt containing 2.6% REO, 11% P205 (0.414 lb/t U3O8) Mine Life 22 years based on current reserve
Approvals Environmental – EIS in preparation. Mining – subject to environmental Proposed Schedule Feasibility study in progress. EIS in preparation. Investment decision in early
2015. Construction period up to 36 months starting in Q1 2016.
Jobs Construction – approx 500+ Operations – approx. 350+
Capex Currently under revision. Targeting A$1.0-1.5 billion
Mine Name MAUD CREEK
Company Crocodile Gold Corp
Contact Jason Morin – General Manager NT
Phone: (08) 8982 4444 Email: [email protected] Location Approx 285 kms SSE of Darwin and 20 kms E of Katherine
Description Possible open cut and/or underground mining operation. Ore likely to be transported offsite for processing, probably to Union Reefs processing site.
Product Gold
Resource Indicated 7.7Mt @ 3.5 g/t gold & Inferred 4.2Mt @ 2.55 g/t gold Mine Life Undetermined
Approvals Scoping Study completed in Q4 2012. Updated resource reported in 2013.
Mining proposal yet to be submitted.
Proposed Schedule Construction – TBA Production - TBA Jobs Construction – TBA Production - TBA
Capex TBA
Mine Name CHARLEY CREEK
Company Crossland Strategic Metals Limited Contact Geoff Eupene – Executive Director/CEO
Phone: (08) 8981 5911 Email: [email protected] Location Approx. 95 km WNW of Alice Springs
Description Potential new mine. Open cut mining & processing through a wet and dry mineral concentrator to produce a high grade (40%+) TREO concentrate with further refining to yield a high purity mixed rare earth carbonate product.
Product Rare earths and zircon
Resource Indicated 387Mt containing 114,050 tonnes TREO & 195,000 tonnes zircon.
Inferred 418Mt containing 121,100 tonnes TREO & 220,000 tonnes zircon.
Mine Life JORC compliant Scoping Study based on 20 years + (additional potential) Approvals Development proposals yet to be submitted.
Proposed Schedule JORC compliant Scoping Study and economic appraisal complete. Drilling of potential high grade areas in 2013. Feasibility Study in 2015 (subject to finance).
Jobs 150
Capex $156M
Mine Name BIGRLYI
Company Energy Metals Limited
Contact Weidong Xiang – Managing Director
Phone: (08) 9322 6904 Email: [email protected] Location Approx 340 kms NW of Alice Springs
Description Potential open pit and underground mining with on-site processing through simple acid leach circuit. Results of Pre-Feasibility Study released in June 2011. Feasibility and environmental studies continue.
Product Uranium
Resource 7.5 Mt @ 0.13% U308 for 21.1 M lbs U3O8 & 19.7M lbs V2O5
Mine Life
3.63 Mt @ 0.14% U3O8 for 11.2 Mlbs U3O8 & 15.7 Mlbs V2O5
Pre-Feasibility Study (PFS) based on 8 years Approvals Development proposals yet to be submitted.
Proposed Schedule Construction – TBA Production – TBA Jobs Construction – TBA Production – TBA
Capex $181M (from PFS).
Mine Name GEMCO – EASTERN LEASES
Company BHP Billiton Manganese Australia Pty Ltd Contact Mike Chapman – Study Manager Eastern Leases
Phone: (07) 3237 6574 Email: [email protected] Location Approx 650 kms ESE of Darwin
Description Develop a number of additional quarries on the eastern leases, approx. 2 kms east of the existing mine. Ore will be trucked to the existing GEMCO mine facilities for processing and exported by the existing Milner Bay port, with no changes or upgrades to these facilities.
Product Resource Mine Life Approvals
Proposed Schedule Jobs
Capex
Manganese
38 Mt of manganese ore
Eastern Leases will extend mine life by 4 years to 2031
Environmental: EIS in preparation Mining: pending environmental Construction – Q1 2017 Production – Q3 2018
Construction – 90 Production – Existing Workforce TBA
Mine Name JERVOIS
Company KGL Resources (previously Kentor Gold) Contact Simon Milroy – Managing Director
Phone: (07) 3071 9003 Email: [email protected] Location Approx 270 kms north-east of Alice Springs
Description Reopen old mine based on open cut for first 4 years and underground operation from years 4 to 7. Sulphide ore processed via a conventional flotation processing facility to produce a copper concentrate.
Product Resource
Copper concentrate with silver & gold credits plus a separate lead and zinc concentrate.
23.5Mt @ 1.1% Cu & 22.1g/t Ag (includes 113,000oz gold) Mine Life 7 years
Approvals Development Proposals (NOI) submitted in November 2013. EIS required for environmental assessment by EPA. Pre-Feasibility Study expected Dec 2014.
Proposed Schedule Construction – Q2 2016 Production – Q4 2017 Jobs Construction – 300 Production – 200 Capex Estimated approx. $192 M
Mine Name ROVER PROJECT
Company Metals X Ltd (Previously Westgold)
Contact Paul Hucker – Chief Operating Officer – Gold Division
Phone: (08) 9220 5700 Email: [email protected] Location Approx 1100 kms S of Darwin and 80 kms SW of Tennant Creek Description Development of new underground mine and possible new mineral field.
Feasibility studies in progress. Construction of exploration decline approved for underground definition drilling of resource.
Product Gold and Copper (IOCG) Resource 6.8Mt @ 5.57 g/t AuEq Mine Life Undetermined
Approvals Further drilling being undertaken. Feasibility studies in progress. Exploration decline approved and commenced.
Proposed Schedule Construction – TBA Production - TBA Jobs Construction – TBA Production - TBA Capex Estimate $101M (Scoping Study)
Mine Name WONARAH/ARRUWURRA (STAGE 1)
Company Minemakers Limited
Contact Neville Bergin – General Manager Projects Development
Phone: (08) 9264 7000 Email: [email protected] Location 250 kms east of Tennant Creek
Description Revised development proposal - proposed open cut mine, crushing and de- sliming of ore, processing on-site using improved hard process (IHP) to produce super phosphoric acid (SPA) @ 70% P2O5. Phased development with the first production train producing 181,000 t P2O5 per annum, progressively increasing to 0.9 Mt per annum over an estimated six year period.
Product Super phosphoric acid (SPA)
Resource 842 Mt @ 18.1% P2O5 (10% cut-off ); 1,406 Mt @ 13.5% P2O5 (5% cut-off ) Mine Life >30 years
Approvals Environmental: June 2013 Mining – pending
Proposed Schedule Construction & Production – Pending successful validation of IHP technology Jobs Construction – 50 to 200 Production – 110 rising to 350 at full production Capex Estimated initial capital $350M increasing to $1.2B over 6 years.
Mine Name KILIMIRAKA
Company MZI Resources Limited
Contact Trevor Matthews – Chief Executive Officer
Phone: (08) 9328 9800 Email: [email protected] Location Southwest corner of Bathurst Island
Description Proposed open cut surface dunal mining with onsite processing to produce
Product
Zircon, rutile and ilmenite concentrate. Possible barging or port facilities for transfer to freighters for export overseas.
Zircon, rutile and ilmenite concentrate
Resource 56.2 Mt containing 893,700 tonnes of heavy mineral Mine Life 8-10 years
Approvals Environmental – 2016 Mining – Pending environmental Proposed Schedule Construction – 2017 Production – 2018
Jobs Construction – TBA Production – 50
Capex TBA
Mine Name AMMAROO
Company Rum Jungle Resources Limited Contact Chris Tziolis – Managing Director
Phone: (08) 8942 0385 Email: [email protected] Location 200 kms SE of Tennant Creek
Description New mine – open cut strip mining operations with crushing and screening to produce Mechanically Beneficiated Ore. Also evaluating the options of production of phosphoric acid or ammonium phosphate fertilizers. Notice of Intent submitted in April 2014. Pre-Feasibility to be completed in Sept 2014.
Product Rock phosphate, phosphoric acid or ammonium phosphate fertilizers Resource Global Resource of 1.135 billion tonnes @ 14% P2O5 (10% cut-off)
Measured Resource of 138 Mt @ 15.7% P2O5 (10% cut-off) Mine Life 25 years plus
Approvals Environmental – in progress Mining – pending environmental Proposed Schedule Construction – 2016 /17 Production – 2017/18
Jobs Construction – TBA Production – 110-200
Capex $500 M +
Mine Name SHERWIN CREEK (ROPER RIVER) IRON ORE PROJECT
Company Sherwin Iron Limited (Administrators and Receivers & Managers appointed) Contact Aaron Swaffield – KordaMentha
Phone: (07) 3338 0233 Email: [email protected] Location 475 kms southeast of Darwin and 120 kms east of Mataranka
Description Development of new iron ore mine at the Sherwin Creek deposit. Open cut and surface strip mining. Direct Shipping Ore is mined, crushed and screened and trucked to Darwin Port for export (initial 1Mtpa increasing to 3Mtpa).
Alternative transport options, including access to rail are being considered.
Product Iron ore (Hematite)
Resource JORC resource of 488Mt @ 41.7% Fe (Mar 2012), including 41.1Mt @ 57.8% Fe.
Mine Life Estimate 20 + years (Initial DSO operation at Sherwin Creek is 6 years) Approvals Environmental – in process Mining – pending environmental approvals Proposed Schedule Subject to market conditions and receivership outcomes.
Jobs Construction – 150 Production – 100 Capex $170M (DSO & Beneficiation operations)
Mine Name FRANCES CREEK – ELIZABETH MARION AREA
Company Territory Resources Ltd (Territory Iron Pty Ltd) Contact Chris Masters – General Manager Operations
Phone: (08) 8976 8000 Email: [email protected] Location Approx 180 kms SE of Darwin and 25 kms N of Pine Creek
Description Establishment of three new open cut pits within the existing Mineral Leases to extend mine life. Ore will be trucked to the existing crushing and
beneficiation plant for processing. Processed ore will be trucked to the existing rail siding and railed to Darwin Port for export.
Product Iron Ore
Resource 1.514 Mt @ 50.8% Fe (with cut-off grade of 40% Fe) Mine Life Approx. 2 years
Approvals Development proposals submitted in March 2014. EIS in preparation.
Proposed Schedule Construction – 2015/16 Production – 2015/16 Jobs Construction – TBA Production – TBA
Capex TBA
Mine Name MOLYHIL
Company Thor Mining PLC
Contact Mick Billing – Chairman
Phone: (08) 7324 1935 Email: [email protected] Location 220 kms northeast of Alice Springs
Description Proposed open pit mining operation with on-site processing by gravity, magnetic separation and flotation to produce W and Mo concentrate.
Definitive Feasibility Study completed in July 2012 with upgrade in Q4 2014.
Letter of Intent signed for tungsten offtake. Development subject to finance.
Product Tungsten and Molybdenum concentrates.
Resource Reserve
4.71Mt at 0.4% combined WO3 and Mo 3.0 Mt at 0.31% WO3 and 0.12% Mo Mine Life Initially 6 year
Approvals Environmental – Nov 2011 Mining – pending assessment of MMP Proposed Schedule Construction – 2015/16 subject to finance Production – 2016/17 Jobs Construction – 100 Production – 70
Capex $70M
Mine Name CHANDLER SALT MINE PROJECT
Company Tellus Holdings www.tellusholdings.com.au Contact Duncan van der Merwe – Group Managing Director
Phone: (02) 92417678 Email: [email protected] Location Approx 120 kms south of Alice Springs
Description New mine. Underground multi-mineral salt mine utilising standard mining technology, access via decline, room and pillar using a continuous miner.
Voids left from mining used for storage. Surface facilities include salt processing plant (wet & dry), offices, camp and airstrip. DFS stage 1 (FEL2) completed in June 2014. DFS (FEL3) due in 2015.
Product Industrial and edible salts, associated minerals (fertilizer) & storage/disposal Resource 309 Mt Halite (NaCl) JORC Measured Resource = 525 year mine life Mine Life 29 years + (Stage 1 is 500,000 tpa - majority for export)
Approvals Development proposals submitted in November 2012. EIS in preparation.
Environmental – 2016 Mining – Pending environmental Proposed Schedule Construction – Q1 2017 Production – 2020 (storage Q3 2017) Jobs Construction – 280-350 Production – 180
Capex $464M
Mine Name MT TODD
Company Vista Gold Australia Pty Ltd
Contact Brent Murdoch – Director & General Manager Australia Phone: (08) 8941 9105 Email: [email protected] Location 250 kms south of Darwin and 55 kms north of Katherine
Description Reopen the Mt Todd Gold Mine. Conventional open pit mining extracting up to 17.8 million tonnes per annum of ore for onsite processing through newly constructed CIL Plant. Scope of Feasibility Study revised to include increased throughput. Environmental Impact Statement submitted & under assessment.
Product Gold dore (370,000 ozs pa)
Resource 7.4 million ozs of measured and indicated mineral resources and 1.7 million ozs of inferred mineral resources
Mine Life 19 years (including 2 years construction)
Approvals Environmental – Q3 2014 Mining – pending EPBC approval Proposed Schedule Construction – 2016/2017 Production – 2018
Jobs Construction – 400-450 Production – 350-400
Capex $1.05B
